Your Unbiased Advisor: build assets

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Friday, December 31, 2021

Teach you kids to triple their assets

Make the new year better

New year fresh start for your kids/grandkids

Make sure you teach your kids how to create wealth the easy way. My parents were not investors. At my first job, I had no clue which investment option to use for my 401k contribution and company match. The HR person told me to put it into the 'safe' stable value fund. That was the worst choice at my age I learned later when I got my securities licenses. If I had followed their advice I would have ended up with $150,000 instead of a Wealth Reserve of $877,233 about 33 years later. We have used this 'Wealth Reserve' as I call it to have funds to use low-cost high-deductible insurance, to buy two homes and 5 cars with higher down payments or cash, and now to receive $2,500 a monthly in a retirement supplement. Your kids use the Buffett investment strategy for any amateur. Buffett recently proved his method, though simple, beat the strategies of the best hedge funds. Start with only $1,000.

Start in 30 minutes: https://www.amazon.com/Give-your-child-leg-manage/dp/1096505355

Why our readers use low-cost efficient Vanguard funds

World's greatest investor's retirement advice: Retirement income for life from 2 Vanguard funds. Avoid “high-fee managers” Warren Buffett's personal will provides for his family by directing that his cash assets be invested in just two Vanguard funds: One will provide cash for the coming year and the other will provide a sound future. The best way to protect your family's future is to be invested in the stock market, Pure and simple. When you have stock assets, your money compounds at higher rates when your account fees are 0.01-0.05%, not the retail rates of 1.5-3%. You don't have to settle for retail products that are structured to provide your financial sales firm with higher revenues. The average investor earns just 3.79%, not the 10-12% market rates. (QAIB)

2021 Total Return Fund Long-term Return Longevity

29.0% 500 Index 11.2% since 1976

27.3% Energy 8.8% since 1984

12.9% Extended Market 10.7% since 1987

14.7% Health 15.8% since 1984

00.0% International Growth 11.4% since 1981

22.2% PRIMECAP 14.0% since 1984

17.8% Small Cap Index 10.6% since 1960

08.4% Wellesley Income 9.6% since 1970

28.0% Windsor 11.4% since 1958

29.2% Windsor II 11.2% since 1985

18.9% Average 11.5% *

*Average Annual Returns as of 12/31/21

Use the Buffett strategy: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

Why automatic investing is so successful

If your investment plan is NOT on automatic, you may be missing the second best strategy. After the miracle of compounding, investing every month—buying more when prices are low and less when higher—usually beats market timing. Think of it: you don’t need to decide when or how much to invest. There is no rush to buy on the dip or guess when your stocks/funds are at their peak gains. You don’t have to fret that you may have missed the 10 best days of the stock market rise each year. Proof: Fidelity analyzed the most successful retirement accounts of all its clients. The most successful accounts were those that were NOT changed—no selling. The accounts that were forgotten or client died gained the most over time. Investing benefits from the miracle of compounding—dividends/interest reinvested—when there is no market-timing buy/sell trading. Auto-invest strategy takes our emotions out of the process. We don’t miss the best 10 days of gains since they are NOT predictable. We don’t sell at the wrong time.

Ride the wave: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Is Bitcoin right for you?

If you own BTC you have had a wild ride this year. If you don’t you probably earned 27% in the real market. If you own BTC you know this is a speculative play and if you cashed out at $50,000 before it fell to $31,000, you are probably happy. If not you are sad. There are many professionals that feel this game is worse than the Ponzi scheme of Madoff. Why? Because there is nothing real here. And you can’t use it to buy anything except in El Salvador and Tesla auto. And many accounts have been hacked. You may be able to make money with your account but it is hard to guard the value. It may drop a lot on one day but you never know how much you will have from one day to the next. Yes, there are folks who have won the lottery in Bits but not everyone wins in Ponzi schemes. One unit is $50K or more so you can’t create a 401k this way. The tax situation is fluid too. The IRS has not figured out how to regulate this phantom yet.

Use a real tax-free account with real money: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

Why Mad Money Cramer recommends index funds

AARP interview: “If you’re going to buy a company’s stock, you have to know what they do. You have to know who their clients are. You have to know how they do when the economy’s doing well and when the economy’s doing badly. You have to read articles about the company. You have to read the [transcripts of] conference calls [in which companies discuss their financial results]. If you don’t have any time, you just own an index fund; you own good with the bad. It’s perfectly good for an individual to own an index fund. People are unwilling to do the work. I have friends who tell me, “These stocks seem OK, and so I’m just going to buy them.” And I’m, like, “No, please don’t do that. Please don’t do that.” The 500 Index fund only has the top grossing firms. They would not be in the 500 fund if they were ‘bad,’ as Cramer said. Over time, the average advisor account earned just 6.2% vs 500 index 10.7%. Picking a successful individual stock is a lot harder than Cramer implies. Every analyst picks bad stocks, even Cramer. Warren Buffett’s unbiased advice: buy an S&P 500 index fund.

Take their advice: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

Wealth building hype can mislead you

Most articles you read about investing are written by journalists, not actual investors or folks who work in the financial field. Building wealth takes time, patience and commitment—all of which don’t sell books, magazines or TV shows. One article says you can start with $1 using an app. No. A low-cost investment account requires $1,000 to start. And $250 a month for about 30 years will create a nest egg of $700,000. It also promises that a “quality financial advisor could turn $500,000 into $3.4 million in 25 years.” No. The average advisor account earned just 6.2% vs 500 index 10.7%. A prominent financial analyst calculated that the average advisor fees will rob you of up to 63% of what you could have had using a low-cost stock market index. Pay more; earn less. The article promises to cut your car insurance by $700 if you use the author’s sponsor. No. All financial firms promise huge savings using one very unusual example. You may save by shopping 3 different carriers every 2 years but you will need to change your deductibles, drop coverages and benefits you don’t need. You may save $700 over 10 years or more. The article promotes a home warranty so you “don’t have to worry about fixing your home” heaters/appliances. No. These contracts don’t cover everything that goes wrong and cost more over time than you could accumulate in an account. The article also claims you can make “some money” watching videos and taking surveys online. No. Your payment for a survey is no more than $10. Use the time to learn how to build wealth from those who have actually done it like Warren Buffett and John Bogle.

Their strategies actually work: https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment/dp/1523693045

?**********ACCOUNTABILITY**************?

Like 1776, this period is a test of democracy—We rejected an "American fascist" once

The Path to Dictatorship: 2010-2030

Proud Boy: 'We took the Capitol’

Who paid for the Jan 6 Coup?

Most terrorists free … to try again

Trumpers purge the disloyal

Big money pays Big Lie

Defense mandate ignored

Terrorists blame gov spys

How Govt wastes our money:

FL makes new record cases 31,758: state health public policy to kill people is working

National guard spreading covid in some states: will military side with terrorists?

Biden hides Trump documents: Jan 6 coup-attempt terrorists applaud

SCAMS/SPINS:

GOP has changed voting laws in 17 states to make sure they don’t lose elections: Fix is in

Sue for Truth: GA poll workers sue One America News, Giuliani debunked fraud claims

Trumpers fire death threats at folks the Leader doesn’t like: no one left to oppose Leader

GOP abortion bans: few men rethink family planning choices

German pastors giving vaccinations for all to save lives

When will airlines make vaccination mandatory so all flyers protected? 850,000 dead

Anti-vaxxers need own hospitals so I can get my surgery: their ‘personal choice’ hurts mine

“Guns for protection” fails: gunman shoots, kills before victims have time to draw/shoot

Who leaves loaded gun around 3 year old: killed herself on Christmas

We are killing each other faster than ever

Airlines switch to cooking oil to cut jet emissions: funny smell in the air

Kia and Hyundai engine fires draw regulator probe: 2011-2014

Drug stores refuse blame for opioid deaths: makers went bankrupt; doctors fight suits

Medallion Financial caught inflating stock price: lender to taxicab medallion buyers

Jobs

Raises for senior staff: if inflation is 7% my salary increase must be 10+%

Unemployment comp raised for anti-vaxxers only in GOP states: buying votes strategy?

Can anyone live on $7.25? 20 states remain below poverty: $15/hr is goal in most

Who owns your account now?

Gov stops Tesla from letting drivers play video games while driving: See why need gov!

See why need mandate vaxx: Pediatric hospitals in states filling fast: Save our kids!

Gov pays for your funeral from Covid: vaccine costs less

Metromile to Lemonade: app to measure how much and how safe clients drive.

Our home prices surged 18% in October: Phoenix up 32.3%

Morgan converts mutual funds to ETF to compete for new money: stop share loss

Miracles:

TSAer jumps line: saves infant not breathing: Santa spirit is everywhere

Virus-shapes decorated deserts at Prague café: creativity fights plague

Covid pills for specific use: you gotta read the directions if your script is filled

Unmarried advisor to millions of couples offers marriage advice: “Please, Thanks, Sorry”

Best of 2021 events: Cheney & Kinzinger stood against the overthrow of our government

A 6th Grader Saves the Lives of Two People on the Same Day

Jan 1 ’22: Congress ban most unexpected charges from out-of-network providers: YES

Alaska sets December temperature record at 67°F: 67 Wow! Dec 26

Tahoe snowfall 202.1 inches breaking a 50-year record.

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

We can apply for health care online: https://www.healthcare.gov/

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts available at http://dankeppel.blogspot.com/

Friday, July 23, 2021

Can bull market continue?

Most employers are charging you too much for their 401k

Nearly one-third of investors believe they do not pay any fees or expenses at all for their investment accounts or they don’t know how much they are paying. Thirty-seven percent of people with a 401k told TD Ameritrade they didn’t think they paid any fees at all. My former industry has been hiding financial advice and product fees from us all our lives. Since employers should be helping us reach our retirement goals (since they don’t provide pensions anymore), they should be charging us zero. Instead they have not made it easy to decipher 401k 403b plan documents. They are written by legal scholars to protect employers, not help us understand how much we are losing over time. Paying 2% in investment, plan and services fees “will erode 63 percent of what you would have had.” Even worse, if you are using a variable annuity, you may be charged 7%. Small employers often use variable annuities from an insurance agent since this costs your boss nothing. Consider low-cost alternatives: https://www.amazon.com/Your-Pension-Box-tax-FREE-employer/dp/1481945157

How assets build your Wealth Reserve

Over time, using a low-cost stock mutual fund, you can create your retirement nest egg. And if you use your IRS-approved investment account, you can spend it all without federal and state income taxes. We call this account a Wealth Reserve because after accumulating your assets for a number of years, you can use your reserves to save on insurance premiums and credit card interest. Debt is the biggest wealth killer. Mortgage debt works because it is tax-advantaged for a large asset that “grows by itself.” We use a low-cost stock mutual fund because we can overcome advisor fees and inflation. The Miracle of Compounding helps us convert $250 a month, $3000 a year, into $1,000,000 in about 33 years. After 15, years you can borrow from your Wealth Reserve to buy a used luxury car. If you make the payments back to your Wealth Reserve instead of paying a car loan interest, you can fund a business start-up. The sooner you begin the sooner you can accomplish all your financial goals. dalbar.com/Portals/dalbar/cache/News/PressReleases/DALBAR%20 Pinpoints%20Investor%20Pain%202015.pdf

Start your Wealth Reserve today: https://www.amazon.com/New-American-Retirement-System-Wealth-ReserveTM/dp/1461030072

Is a “direct indexing” product right for you?

A direct indexing product is a ‘low-cost’, highly customizable, separately managed account. Your advisor personalizes your portfolio of stocks. It attempts to replicate the performance of an index by purchasing the underlying individual equities instead of using an ETF or mutual fund. So you are paying for each trade (500 index, for instance) instead of just buying the low-cost no commission alternative. There are thousands of index funds already; having your advisor re-create the wheel seems stupid and expensive. One of the benefits, according to one money manager, is that “you can buy part of a share that costs a lot, like Google or Amazon.” But you can do that already via any online broker, even at Vanguard. It is difficult to see how buying and maintaining 500 stocks individually commissioned can be cheaper than using a mutual fund costing 0.04% like the 500 Index. One broker claims that "This concept was developed when the research showed that the active manager fails to beat the market the vast majority of the time, so investors have a higher probability of success if they just own the index," according to one advocate. Tax harvesting, ethical stocks and reduced risk are the benefits, he says. Sounds like Wall Street has come up with another trick marketing scheme to sell managed portfolio management for a fee to ‘compete’ with simple low-cost index funds.

Use real indexing: https://www.amazon.com/Millennials-Investment-Strategy-BEST-journey/dp/1533079242

Can the stock market continue to hit new highs?

When the market produces average annual gains of 15.59% since 2009, you must ask how much longer can this continue? The long-term average is 10-12% depending on the period. Every honest advisor and economist (not on TV) will admit they don’t know what will happen. So we all face the same dilemma: hold or try to time the market. Option 1: hold your assets where they are. This requires patience when the market goes down and up. And ‘patience’ is what Warren Buffett advises: "The market is a way to transfer money from the impatient to the patient." Over most periods of time, compounding works best when you don’t trade or re-balance your portfolio. Option 2: Trading requires that you know when the market is at a high point and again when the market is at a low point. You must be right twice. No amateur or professional has been able to know those points over any period of time. Buffett has held some stocks forever: “our holding period is forever.” Since we don’t know when to sell and re-buy, the best strategy is to do nothing—be patient—stocks will rebound. Where else can you put your money? There is no better asset for the long-term. Fidelity analyzed the outcomes of their long-term investors and found the non-trader accounts had the best investment successes. In fact, the best outcomes were in accounts that were forgotten or the owners had died. Face it; no one can know the future.

“Know thyself:” https://www.amazon.com/Meek-Patient-Shall-Inherit-Earth/dp/1492869538

**********ACCOUNTABILITY**************

Like 1776, this period is a test of democracy—We rejected an "American fascist" once

Our Jan 6 ‘Truth and Reconciliation Commission’

Terrorist gets 8 months for coup attempt

GOP big lie: Trump ‘won’: repeat repeat repeat: new “TRUTH”

How Govt wastes our money:

Gov spyware for terrorists put on phones of reporters, human rights, execs, pols, officers

“From a dozen countries, you can spy on the rest of the world.” Gov buys info on anyone.

Millionaire GOP drops IRS audit funding bill: wealthy free to hide income; we pay more

Jeff uses his tax avoidance for $5.5 Billion ride: Amazon pays 0% tax; we pay 32.9%

How a society treats its elderly tells you all you need to know about its human values

Biden lets Trumpist Wilbur Ross escape after lying to Congress: Biden’s wrong message

Judge halts Arkansas ban on abortions: “imminent threat” to women constitutional rights

SCAMS/SPINS:

We train assassins for the world: we help nations kill people

Terrorists go to the game; to the fire; Some terrorists named heroes.

Texas stops teaching that Ku Klux Klan was morally wrong: racist culture in TX

Jeff could have paid a bonus for every unvax person to get the vax: we all live longer

Trump told America Covid was hoax but got vax himself: now ½ of us on death watch

Covid cases rose 140% in the past two weeks: our health going in wrong direction

Year late, McConnell urges vax after watches 610,000 die: too little too late Mr Hannity

Covid carrier boards plane as woman in ni·qab so he can fly: easier to get vax?

Texas hospital reported its first case of the Lambda COVID-19 variant

LA: On Wednesday, 2,551 new infections were recorded among non-vac people

Crypto market Binance has no complaint center so buyer beware: FTC can’t help you

Same price but get less: downsizing raises profits/CEO pay or just raise prices for CEO $

Scammers keep our scam money: Supremes vote against recovery: where is Congress?

Rental car scams: demand high; supply low: prices rise. Beware low price scammers.

MoneyGram scam refunds: 300,000 complaints to FTC.

Food package dates: we waste more food than the world combined.

UBS caught selling inappropriate funds: ETP linked to short-term market volatility: fine

BlackRock managers take $4.82 billion from higher fees from 15% market gain: no sweat

Joy and Brent Kovar caught stealing from 277 clients: offering “massive returns” crypto

Jobs

Fake job scams have skyrocketed: check sent to set up is fake so they can empty account

Since July 2009, when the $7.25 minimum went into effect, it has lost 18% of its value

NFL requires vax so some players may quit: $ millions at stake: hurting teammates?

Who owns your account now?

Your iphone is vulnerable despite Apple claims: “hacked multiple times with Pegasus”

Retirement plan business of Prudential Financial to Empower Retirement

Medicare cost and payment problems: report shows areas of concern